MONTGOMERY, Alabama --- A bill to create an Alabama Space Authority to develop a spaceport cleared a House committee today after one of the proponents promised to address concerns that the state could go into debt with the project.

The bill's sponsor said the state would not incur debt.

Supporters said the bill is a key step for the state being able to obtain a federal study grant and license to eventually develop a port for commercial space flights.

The House Technology and Research Committee approved the bill, SB378, by Sen. Gerald Dial, R-Lineville. That sends it to the House of Representatives, which could give it final passage.

Several committee members questioned Rep. Mac McCutcheon, R-Huntsville, who spoke for the bill before the committee, about the authority's potential bond debt.

Under the bill, the 10-member authority would be able to borrow money by issuing bonds and would be able to buy property and lease property.

McCutcheon promised committee members that he would ask Gov. Robert Bentley to amend the bill to address any concerns about debt liability if the bill passes the House.

The committee then approved the bill.

Time is running short for it to win final approval. Only two days remain in the legislative session.

But McCutcheon has influence over whether the House will consider the bill during the final two days because he chairs the House Rules Committee, which drafts the proposed agendas for the House.

McCutcheon said it was likely the bill will be considered on the last day of the session, expected to be May 20, although he said it could possibly come up Thursday.

Dial, the bill’s sponsor, said the state would incur no debt. He said the authority would be similar to a county industrial development board in that bond debt would be repaid with revenues from a project agreement, such as a property lease.

“This does not in any way obligate the state,” Dial said.

Dial said establishment of the authority will allow the state to apply for a federal grant that would be used for a study to determine the best location for a spaceport. He said the state would also apply for a license with the Federal Aviation Administration.

Dial said Alabama has a chance to be a key site in the southeast in the emerging commercial space flight industry, both for personal travel and moving cargo.

McCutcheon said Alabama is in a strong position to compete for a site. Alabama has strong ties to the space industry because of NASA’s
Marshall Space Flight Center and the Army’s Redstone Arsenal in
Huntsville.

“With Alabama having the technology we have from being a space leader in our nation, we felt like we needed to get in line with this,” McCutcheon said.

The authority would include the directors of the state departments of Commerce, Economic and Community Affairs, and Transportation, as well as the lieutenant governor. In addition, there would be six appointed members. The governor and lieutenant governor would appoint one each and the speaker of the House and the president pro tem of the Senate would appoint two each.

The authority would operate as part of ADECA, which would be involved in the grant application process.